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What is foreign bribery?
Foreign bribery occurs when a person or business offers, gives, or promises a bribe to any person to influence a foreign public official in relation to the performance of their official duties.
Make a report even if you are not sure whether the information you have relates to foreign bribery. Your information could be highly relevant to the SFO.
Foreign bribery also occurs when public officials in New Zealand are offered, given or promised bribes by foreign persons. The bribe is intended toobtain or retainbusiness or to gain an unfair business advantage. A bribe can be money or anyother thing of value, including lavish hospitality, employment, travel, gifts or other benefits intended to influence decisions or actions.
It is a criminal offence to bribe or attempt to bribe a foreign public official. It is also a criminal offence for New Zealand public officials to solicit or accept bribes from foreign persons. Companies and individuals involved in foreign bribery face severe penalties, including significant fines and imprisonment.
Bribery can also take place in the context of private international business transactions where no public officials are involved. Bribery in the private sector is also a criminal offence in New Zealand and in other countries.
The SFO seeks information about any suspected foreign bribery offending, involving public officials or between private organisations.
If you suspect foreign bribery, you can report it confidentially through the SFO’s anonymous reporting tool.
Reporting is simple with this easy-to-use tool, which allows you to make a report without disclosing your personal information.
Further information/FAQs
Who are foreign public officials?
Foreign public officials include a variety of people who act in the service of a foreign government, including members or employees of a foreign government, members of the judiciary in a foreign country, persons employed by companies controlled or owned by a foreign government and employees of public international organisations.
Bribery and corruption take many forms, and this is the same for foreign bribery. In simple terms the foreign public official is being offered something (directly, or indirectly e.g. offered to a member of their family) in return for the foreign public official doing something they shouldn’t or refraining from doing something they should.
Some examples of foreign bribery involving New Zealand persons might include:
A consultant acting for a New Zealand company offers free products to a foreign customs official to disregard certain regulatory requirements in relation to the importing of goods.
An employee of a New Zealand company offers an employment opportunity to the son of a foreign local councilemployee in return for issuing a business licence to operate in thatprovince.
A foreign agent of a New Zealand company makes a cash payment to the procurement manager of a foreign state-owned enterprise to secure a contract for the New Zealand company.
A foreign public official gives a New Zealand company information about other tenderers in a competitive tender process in return for a new vehicle.
Some examples of bribery inprivate business transactions might include:
A Director of a New Zealand company arranges for the procurement manager of a foreign company to visit New Zealand on an all expenses paid site visit during a competitive procurement process. The visit includes several nights of luxury accommodation, rugby tickets and cash to spend at the casino. The New Zealand company is awarded the contract.
A sales employee of a New Zealand company agrees to pay a kickback to the employee of a foreign company in return for authorising the purchase of goods.
If you are aware of any of the following circumstances you should be alert to the risk that foreign bribery may be occurring. On their own they do not necessarily mean that corruption is a factor, but when several red flags are present, it suggests a higher level of risk awareness is required.
Financial Red Flags
Unexplained large payments to overseas third parties or consultants
Payments made to offshore accounts or shell companies
Transactions with vague or non-existent documentation
Inflated invoices or overpayment for services
Large cash transactions or requests for cash payments
Behavioral & Relationship Red Flags
Business partners or agents refusing to provide details on transactions
Requests to route payments through third parties or unrelated accounts
Unusual secrecy or reluctance to share financial records
A high level of discretion requested around a particular contract
A foreign official requesting additional fees
A third party or consultant requesting additional fees without explanation
Operational Red Flags
Contracts awarded without a competitive bidding process
Contracts awarded to a party that lacks the apparent capability to perform the contract
Frequent or unmonitored interactions with government officials
Hiring of foreign agents or consultants without proper due diligence
Excessive gifts, travel, or hospitality given to foreign officials
A sudden increase in business success in high-risk countries
Foreign bribery distorts fair competition, undermines democracy and trust in institutions anderodes quality of life. It raises the cost of doing business and encourages organised crime and other threats to security to thrive. It occurs in all countries, but its impact is particularly acute in developing countries, whereit fuels inequality and injustice and defeats efforts to alleviate povertyand improve living conditions.
By reporting foreign bribery, you help to:
Maintain New Zealand’s reputation for integrity in business
Support fair trade and investment opportunities
Strengthen the global fight against corruption
Your voice matters. If you have information about foreign bribery, speak up. By taking a stand against corruption, you help ensure a fair and honest global business environment.
If you make a complaint to the SFO about foreign bribery in relation to your place of work, you may come within the protected disclosure regime contained in the Protected Disclosures (Protection of Whistleblowers) Act 2022 (‘the Act’). The Act provides for confidentiality and protectionfrom retaliation for individuals who report serious wrongdoing in good faith.
Even if you qualify for protection under the Act, you can still use the SFO’s Report Foreign Bribery tool to make an anonymous report. To maintain your anonymity, do not provide information that might reveal your role in an organisation and, in turn, might reveal your identity.Alternatively, you can make a confidential report using the mechanisms set out on the SFO’s website.
If you do not want to make an anonymous report, but wish your report to be confidential, you may wantto make a complaint byone of the methods set out on the SFO’s website. The SFO is a law enforcement agency and there are ways to protect your identity under New Zealand law. Please let us know in your report if you wish your identity to remain confidential.
